Senator Elizabeth Warren Questions US Crypto Bank Approvals Over Financial Risk Concerns

U.S. Senator Elizabeth Warren has raised concerns over the approval of crypto-focused banking institutions, questioning whether several companies were allowed to operate without meeting proper federal standards.

In a letter to Office of the Comptroller of the Currency (OCC) chief Jonathan Gould, Warren asked the regulator to explain why trust charters were approved for nine crypto firms, including Coinbase, Paxos, Ripple, BitGo and Fidelity Digital Asset Services. She argued that these firms are operating like crypto banks while avoiding the stricter rules required for full service national banks.

Warren said the companies appear to be using narrow trust bank licenses even though their business models involve activities similar to banking services.

Crypto Trust Charters Under Regulatory Pressure

According to Warren, the firms may be engaging in non-fiduciary custodial services, payment processing, lending activities and stablecoin operations that are closely linked to deposit-taking.

“These companies are effectively crypto banks that want to evade the fundamental safeguards and obligations that come with being a bank,” Warren said in her letter. She argued that such a regulatory path could create risks for consumers and the wider financial system.

Questions Over Trump Administration and OCC Decisions

Warren also requested records of communications between the OCC and President Donald Trump or his family regarding crypto charter approvals. She has previously criticized the possible charter path for World Liberty Financial, a crypto company connected to Trump and his family.